Investment Amount
Interest Rate
Total Interest Amount
Total Payout (Principal + Interest)
If you have chosen fixed deposits, you can opt to receive the interest you earn at periodic intervals. Let us make you understand this with an example. For a tenure of 5 years, at 8% p.a interest rate, the monthly interest on a ₹25 Lakh FD will be ₹16,666 with a total interest earned of ₹11.73 Lakhs.
Likewise, on opting a tenure of 2 years for the same FD amount at 8% p.a. will generate a monthly interest payout of ₹16,666, but the total interest earned will be ₹4.16 Lakhs. As shown, the interest earned per annum will come down when you choose a shorter timeline.
Below is a table to help you visualize the ₹25 Lakh FD interest per month for a tenure of 5 years. This will help you understand how different interest rates impact your return.
Deposit Amount |
Interest Rate (p.a.) |
Monthly Interest Payout |
₹25 Lakhs |
6.00% |
₹12,500 |
₹25 Lakhs |
6.50% |
₹13,541 |
₹25 Lakhs |
7.00% |
₹14,583 |
₹25 Lakhs |
7.50% |
₹15,625 |
₹25 Lakhs |
8.00% |
₹16,666 |
₹25 Lakhs |
8.50% |
₹17,708 |
₹25 Lakhs |
9.00% |
₹18,750 |
₹25 Lakhs |
9.50% |
₹19,791 |
₹25 Lakhs |
10.00% |
₹20,833 |
Note: The monthly payouts mentioned above are indicative. Your actual returns depend on the bank or NBFCs policies.
The monthly interest on ₹25 Lakhs fixed deposit depends on the interest rate and the chosen tenure. Here’s a table outlining the returns based on the interest rates for both regular and senior citizens from some leading banks and NBFCs in India for 2024, assuming a 5-year tenure.
Bank/NBFC/HFC |
Non-senior Citizen (p.a.) |
Monthly Interest Payout |
Senior Citizen (p.a.) |
Monthly Interest Payout |
Bajaj Finance Ltd. |
7.81% |
₹16,270 |
8.05% |
₹16,770 |
PNB Housing Finance Ltd. |
7.35% |
₹15,312 |
7.55% |
₹15,729 |
Mahindra Finance Ltd. |
7.55% |
₹15,729 |
7.80% |
₹16,250 |
LIC Housing Finance |
7.50% |
₹15,625 |
7.75% |
₹16,145 |
Shriram Finance |
8.47% |
₹17,645 |
8.97% |
₹18,687 |
ICICI Bank |
7.00% |
₹14,583 |
7.60% |
₹15,833 |
HDFC Bank |
7.00% |
₹14,583 |
7.50% |
₹15,625 |
IDFC First Bank |
7.00% |
₹14,583 |
7.50% |
₹15,625 |
Axis Bank |
7.00% |
₹14,583 |
7.75% |
₹16,145 |
IndusInd Bank |
7.25% |
₹15,104 |
7.75% |
₹16,145 |
YES Bank |
7.25% |
₹15,104 |
8.00% |
₹16,666 |
Jana Small Finance Bank |
7.25% |
₹15,104 |
7.75% |
₹16,145 |
Kotak Mahindra Bank |
6.20% |
₹12,916 |
6.70% |
₹13,958 |
State Bank of India |
6.50% |
₹13,541 |
7.50% |
₹15,625 |
AU Small Finance Bank |
7.21% |
₹15,020 |
7.70% |
₹16,041 |
Ujjivan Small Finance Bank |
7.20% |
₹15,000 |
7.70% |
₹16,041 |
Note: The above-mentioned rates are as of June 2024 and subject to change at the bank or NBFCs’ discretion.
Here’s a table detailing the maturity amounts for a ₹25 Lakh FD interest per year at an interest rate of 7.25% p.a., with a breakdown across different tenures:
Tenure |
Yearly Payout |
1 Year (12 Months) |
₹26,81,250 |
2 Years (24 Months) |
₹28,75,641 |
3 Years (36 Months) |
₹30,84,125 |
4 Years (48 Months) |
₹33,07,724 |
5 Years (60 Months) |
₹35,47,534 |
Note: The above-mentioned rates are subject to change at the bank or NBFC's discretion
The financial institution is liable to deduct TDS if the annual interest amount crosses the limit. Here are different conditions for TDS on your interest on a ₹25 Lakh fixed deposit.
No TDS will apply if the interest does not exceed ₹40,000
For senior citizens, the interest amount limit is extended to ₹50,000
TDS will be deducted 10% if you have provided PAN
If you have not provided PAN, TDS will be deducted at 20%
To calculate your ₹25 Lakh fixed deposit interest per month, simply follow these steps:
Input the deposit amount, tenure, and applicable interest rate
Select the 'Monthly' option under the 'Interest Payout' section
The calculator will display an estimate of your total interest earnings and monthly payouts
Here’s how you can calculate the monthly interest on a ₹25 Lakh FD and maturity amount at an interest rate of 8% p.a. for 3 years:
Monthly Interest = Principal × Interest Rate / 12
Monthly Interest = ₹25,00,000 × 8% / 12
Monthly Interest = ₹25,00,000 × 0.08 / 12
Monthly Interest = ₹16,666.67
The ₹25 Lakh FD monthly interest earned would be ₹16,666.67.
Interest Earned Upon Maturity
Total Interest = Monthly Interest × Number of Months
Total Interest = ₹16,666.67 × 36
Total Interest = ₹6,00,000
The total interest accumulated over the 3-year period would be ₹6,00,000
Note: Check the formula used by the bank or NBFC to get an accurate estimate.
Some banks and NBFCs charge a penalty for early withdrawal of the FD. While the exact penalty may vary across financial institutions, it’s important to check this before investing. Typically, if you withdraw early, the interest rate is reduced, and some banks or NBFCs may also deduct a percentage from your interest, resulting in lower returns.
If you invest ₹25 Lakhs in an FD for 4 years at an interest rate of 7.50% p.a. but withdraw prematurely after 1 year, the applicable rate drops to 6.50% p.a. After applying a 1% penalty, the final interest rate is reduced to 5.50% p.a., resulting in lower returns.
Parameter |
Details |
Principal Amount Invested |
₹25,00,000 |
Maturity After 3 Year |
₹31,19,580 |
Interest Rate at the Time of Booking |
7.50% p.a. |
Effective Interest Rate for 1 Year Tenure |
6.50% p.a. |
Premature Withdrawal Penalty Rate |
1% p.a. |
Final Interest Rate |
5.50% p.a. |
Final Amount Payable |
₹26,37,500 |
Note: The figures above are for illustration purposes only. The actual penalty charges may vary depending on the bank or NBFC’s policies.
Yes. According to the Income Tax Act, 1961, TDS at the rate of 10% will be deducted if your interest exceeds the permissible limit. So, if the yearly interest on an FD of ₹25 Lakhs or any amount exceeds ₹40,000, TDS will be deducted. However, this limit is extended to ₹50,000 if you are a senior citizen investor.
To earn a regular interest income, you must book an FD by submitting your KYC documents and the latest passport-size photographs. However, these requirements may differ across issuers. Choose the monthly payout option when opening an FD account to get your interest earnings every month.
Your monthly interest income depends on the applicable interest rate offered by the issuer. This also varies according to the FD type and tenor you choose. For instance, the interest you earn on an FD of ₹25 Lakhs for 10 years will be higher than an investment of 5 years.
Yes, you can calculate the interest using an online FD calculator. The calculator uses simple and compounding interest formulas to estimate your returns. Simply input the investment amount, tenor, and interest rate to get the results.
Typically, there is a penalty for premature withdrawal of a fixed deposit. The penalty amount varies among banks and NBFCs, and it's usually a percentage of the interest earned.
Yes. Depending on the issuer, you could take a loan against your fixed deposit. The loan amount usually ranges from 70% to 90% of the FD value, depending on the issuer’s policy. The interest rate for such loans is typically lower as compared to other types of loans.
No. You cannot add more funds to an existing deposit during the tenor. Instead, you could book another FD with those funds.
Yes, fixed deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) for up to ₹5 Lakhs per depositor, per bank.
Opting for monthly interest payouts provides you with a regular income stream, which can be useful for meeting monthly expenses or fulfilling financial obligations. It allows you to enjoy the benefits of your fixed deposit earnings without waiting for the maturity date.